The Oriental fragrance market is highly popular, with brand commercial investment spending increasing by 297% month on month
The inspiration behind Oriental fragrances primarily stems from floral, tea, woody, herbal, and culinary notes. Taking floral notes as an example, Oriental fragrance brands often select flowers with strong Chinese attributes, such as osmanthus, jasmine, and gardenia. In terms of product design, the incorporation of "traditional culture" elements imparts a rich "Eastern atmosphere" to Oriental fragrances, both in concept and appearance.
The projected market size of China's Oriental fragrance industry is estimated to reach 770 million yuan in 2023.
The annual compound growth rate for China's fragrance market from 2021 to 2025 is expected to be 22.5%, far surpassing the global fragrance market's 7% compound growth rate. The market size for fragrances in China is anticipated to reach 20.7 billion yuan in 2023.
Oriental fragrances are emerging as a hot investment sector.
Over the past two years, they have gained attention from venture capital firms, and some brands have attracted interest from leading domestic beauty companies.
The fragrance market has a relatively low brand concentration, with differentiation-based competition prevailing in the industry.
Different channels exhibit significant differences in brand positioning. Tmall's fragrance market is dominated by foreign brands, while a quarter of brands are focused on the Oriental fragrance product line.
Consumers have a preference for floral Oriental fragrances
Consumers have a preference for floral Oriental fragrances, particularly those with rose and jasmine notes. Other popular scents include musk and amber, which fall under the woody fragrance category.
The target audience for Oriental fragrances mainly consists of high-spending females.
According to recent data from Xiaohongshu (Little Red Book), around 86.34% of the audience interested in Oriental fragrances are females, and the majority are part of the middle-class workforce.
Creating unique themed offline stores is a strategy to establish distinctive cultural experiences
Offline scent trials and conveying brand culture in-person are critical factors in consumers' purchasing decisions. Some domestic fragrance brands have placed a strong emphasis on their offline presence.
Future Trends in China:
1. Reviving traditional Chinese fragrance recipes for new perfuming directions.
2. Utilizing AI technology and personality tests to achieve precise fragrance matching for individuals.
3.Exploring new offline distribution channels through third spaces.
4. Expanding scent-related consumer categories, accelerating repurchases in personal care categories.
5. Developing a brand culture system to enhance brand value promotion.
Oriental fragrance products can resonate with consumers more deeply through Chinese aesthetics. Incorporating elements of traditional culture or historical fragrance references can create a multi-dimensional brand image, strengthening consumer loyalty and encouraging active sharing and dissemination.